Accounting Practice Problems Periodic Inventory - FIFO, LIFO, and Average Cost Practice Problems Solution: Using the LIFO method, the latest purchases of inv...

Solution: Using the LIFO method, the latest purchases of inventory are assumed to be contained: a. On the balance sheet as part of ending inventory b. On the income statement as part of cost of goods sold c. Equally split between the income statement and the balance sheet d. On the income statement as part of sales revenue e. Allocated between inventory and cost of goods sold based on the gross margin percentage

Problem

Using the LIFO method, the latest purchases of inventory are assumed to be contained:

a. On the balance sheet as part of ending inventory

b. On the income statement as part of cost of goods sold

c. Equally split between the income statement and the balance sheet

d. On the income statement as part of sales revenue

e. Allocated between inventory and cost of goods sold based on the gross margin percentage